Washington D.C., January 6, 2002—
The International Finance Corporation (IFC), the private sector development arm of the World Bank Group, has signed an agreement to provide a US$25 million loan to Satipel Industrial S.A., one of the largest producer of particleboard in Brazil. The IFC loan will enable the reputable, medium-size company to access to long-term financing, reducing its short-term financing risks, and to improve its operational efficiency.
The IFC loan will help finance Satipel’s $50.5 million investment program for the next two years. This investment program includes the improvement of the financial structure of the company, maintenance of its current production facilities, environmental upgrades and further investments in the company’s plantations. Satipel’s particleboard is sold throughout Brazil to furniture manufacturers.
Bernard Pasquier, IFC’s Director for the Latin America and Caribbean Department also noted: “IFC’s investment in Satipel signals our continued confidence in the Brazilian private sector and the Corporation’s on-going support to mid-size Brazilian firms.”
Founded in 1970, in Taquari, Rio Grande do Sul state, Satipel has become one of the leading low-cost producer of particleboard in Brazil, through its expansion program which included new production facilities in Uberaba, Minas Gerais state.
Brazil was the largest recipient of IFC’s financing in fiscal year 2002, not only in Latin America but also globally. IFC committed $619.6 million in private sector projects in Brazil, in the financial sector as well as in manufacturing, education, information technology, infrastructure and retail.
To meet the decline of availability of trade lines in Brazil, in the last months IFC has strengthened its support to Brazilian companies highlighting IFC’s ability to respond rapidly to the needs of its clients under shifting economic conditions, by making long-term capital as well as much needed trade financing lines available to the private sector.
IFC’s mission (
) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, and provides technical assistance and advice to governments and businesses. Since its founding in 1956 through FY02, IFC has committed more than $34 billion of its own funds and arranged $21 billion in syndications for 2,825 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY02 was $15.1 billion for its own account and $6.5 billion held for participants in loan syndications.